MightyOne wrote: The panic selling to come, when everyone realizes that the world is not going to end as we know it, makes gold the best option for bears.
I am looking forward to $500/$600 an oz over the long term.
So you think the Fed is going to stop devaluing the dollar?
As soon as they do, a world economic crisis of another kind will arise.
The whole world would have to turn into Zimbabwe first, before the US $ could ever have that much value over gold again.
Lets get a few things straight
1) Gold IS NOT and will NEVER AGAIN be money
2) You are not privy to the actual economic data; you are only privy to what ever the media is telling you.
3) decreased demand for gold jewelry, devices that use gold are getting smaller, people are demanding clear filling in dentistry (or choosing silver), more gold being mined to supply increased demand (which will revert to oversupply with lower demand).
Things that are hyper inflated (think homes) can be worth less than they were 15 years ago ---> even if the money supply grows.
Why is this so? because homes were hyper inflated...same thing with gold.
I may be wrong about some things or everything but what I do know is that it is not as easy as pointing to a singular reason for causation.